Zacks Investment Research downgraded shares of PACCAR (NASDAQ:PCAR) from a buy rating to a hold rating in a research note published on Wednesday.
According to Zacks, “PACCAR’s class 8 truck retail sales are rising primarily due to a robust economy and strong freight demand, which is expected to drive its financials. Increasing profits and positive cash flow has enabled the company to pursue an active capital deployment policy. Also, it is well-positioned in its key markets on the back of its strong cash flow, enabling it to undertake capital investments and research and development expenses.However, declining used truck prices pose a concern for PACCAR. The company also faces tough competition in the commercial trucks market. The company's shares have underperformed the industry it belongs to over the past three months.”
A number of other research firms have also issued reports on PCAR. Wolfe Research lowered shares of PACCAR from a peer perform rating to an underperform rating in a report on Friday, October 5th. BidaskClub upgraded shares of PACCAR from a hold rating to a buy rating in a report on Friday, October 5th. ValuEngine lowered shares of PACCAR from a hold rating to a sell rating in a report on Tuesday, October 2nd. Finally, Loop Capital assumed coverage on shares of PACCAR in a report on Wednesday, October 17th. They issued a hold rating and a $68.00 target price on the stock. Five research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and five have issued a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $69.02.
Shares of NASDAQ PCAR opened at $57.09 on Wednesday. The stock has a market capitalization of $20.53 billion, a P/E ratio of 10.15, a price-to-earnings-growth ratio of 0.88 and a beta of 1.41. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.44 and a current ratio of 2.63. PACCAR has a 52 week low of $53.95 and a 52 week high of $79.69.
PACCAR (NASDAQ:PCAR) last released its earnings results on Tuesday, October 23rd. The company reported $1.55 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.51 by $0.04. The company had revenue of $5.42 billion for the quarter, compared to analyst estimates of $5.50 billion. PACCAR had a net margin of 9.73% and a return on equity of 23.52%. The firm’s quarterly revenue was up 14.5% on a year-over-year basis. During the same period in the prior year, the firm earned $1.14 EPS. As a group, equities research analysts expect that PACCAR will post 6.16 earnings per share for the current year.
The business also recently disclosed a dividend, which will be paid on Friday, January 4th. Stockholders of record on Friday, December 14th will be issued a dividend of $2.00 per share. The ex-dividend date is Thursday, December 13th. PACCAR’s payout ratio is currently 26.29%.
PACCAR declared that its Board of Directors has authorized a stock buyback program on Tuesday, December 4th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 2.3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its stock is undervalued.
In other news, insider Mark C. Pigott sold 194,004 shares of the stock in a transaction dated Wednesday, November 7th. The shares were sold at an average price of $58.84, for a total transaction of $11,415,195.36. Following the transaction, the insider now directly owns 3,080,449 shares in the company, valued at approximately $181,253,619.16. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Douglas S. Grandstaff sold 607 shares of the stock in a transaction dated Tuesday, November 13th. The stock was sold at an average price of $59.67, for a total transaction of $36,219.69. Following the transaction, the vice president now owns 5,284 shares in the company, valued at $315,296.28. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 195,262 shares of company stock worth $11,490,110. Insiders own 2.64% of the company’s stock.
Several hedge funds have recently made changes to their positions in PCAR. Janney Montgomery Scott LLC lifted its holdings in shares of PACCAR by 20.6% during the 2nd quarter. Janney Montgomery Scott LLC now owns 15,493 shares of the company’s stock worth $960,000 after acquiring an additional 2,642 shares during the period. Raymond James Financial Services Advisors Inc. raised its holdings in PACCAR by 72.0% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 78,047 shares of the company’s stock valued at $4,836,000 after buying an additional 32,668 shares during the period. Commonwealth Equity Services LLC raised its holdings in PACCAR by 3.9% in the second quarter. Commonwealth Equity Services LLC now owns 39,777 shares of the company’s stock valued at $2,465,000 after buying an additional 1,479 shares during the period. Migdal Insurance & Financial Holdings Ltd. raised its holdings in PACCAR by 5,888.2% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,036 shares of the company’s stock valued at $126,000 after buying an additional 2,002 shares during the period. Finally, Wells Fargo & Company MN raised its holdings in PACCAR by 16.6% in the second quarter. Wells Fargo & Company MN now owns 1,095,941 shares of the company’s stock valued at $67,904,000 after buying an additional 155,915 shares during the period. Institutional investors and hedge funds own 60.57% of the company’s stock.
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.
See Also: Institutional Investors
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